Norwegian Cruise Line Holdings won’t be discounting ticket prices to chase short-term occupancy levels, said Frank Del Rio, president and CEO of Norwegian Cruise Line Holdings, on the company’s second-quarter earnings call.
“We could, like others, chase short-term occupancy and sell cruises for crazy prices, but we don’t want to do that. We never have done that. That is not our strategy,” he said.
“I remind you what happened back in ’08 and ’09, when (during) the great recession, certain cruise companies did drop their prices to ridiculous levels. And it took them, in some cases, 10 plus years, and in some cases, they’ve not yet reached those pre-great recession yields. I’m not willing to mortgage the company for 10-plus years in order to window dress the next quarter or so. I just won’t do it. We’re here for the long term,” he said.
“We’re managing the business on a long-term basis. COVID had a major impact. We were shut down for 18 months or so, and the recovery is not instant mashed potatoes. If you want instant mashed potatoes, you got to go elsewhere because we’re here for the long run. And our pricing strategy, how disciplined it is, is proof of that.
“We simply don’t want to chase short-term occupancy at the expense of long-term pricing. Pricing has a long tail,” he added.
Del Rio said the company had 40% more ticket sales on the books right now compared to 2018 despite a 20% increase in capacity.
“And I’ve been doing this for 30 years. I’ve managed cruise companies in good times and in bad times, and I am convinced beyond a shadow of a doubt that you don’t sacrifice the long-term pricing power of your brand in order to achieve short-term load factor gains,” Del Rio continued.
Norwegian Prima Year Built: 2022 Capacity: 3,215 guests Status: Under construction Location: Marghera, Italy
Nearing the completion of its construction, the Norwegian Prima recently returned from the first set of sea trials. With its first cruise now scheduled in September, the vessel is being built at the Fincantieri shipyard in Marghera, Italy.
Norwegian Encore Year Built: 2019 Capacity: 4,200 guests Status: In service Location: Alaska
The Norwegian Encore is currently sailing a summer program in Alaska. Based in Seattle, the vessel is offering weekly departures to Victoria, Ketchikan, Juneau, Skagway and Glacier Bay.
Norwegian Bliss Year Built: 2018 Capacity: 4,200 guests Status: In service Location: Alaska
In Alaska for the summer, the Norwegian Bliss is offering week-long cruises departing from Seattle. The ship’s regular itinerary includes Victoria, Ketchikan, the Tracy Arm Fjord, Juneau, Icy Strait Point and Sitka.
Norwegian Joy Year Built: 2017 Capacity: 4,200 guests Status: In service Location: Bermuda
Based in New York City, the Norwegian Joy is offering a series of cruises to Bermuda. The seven-night itineraries include a visit to Norfolk and a three-day stop in King’s Wharf.
Norwegian Escape Year Built: 2015 Capacity: 4,200 guests Status: In service Location: Eastern Mediterranean
The Norwegian Escape is currently sailing varied itineraries in the Eastern Mediterranean. Departing from Italy, the seven- to 11-night cruises feature visits to ports in Greece, Croatia, Malta, Montenegro and more.
Norwegian Getaway Year Built: 2014 Capacity: 4,000 guests Status: In service Location: Eastern Caribbean
Returning to North America after a short season in the Baltic, the Norwegian Getaway recently kicked off a summer program in the Caribbean. Sailing from Port Canaveral, the vessel is offering seven-night cruises to the Bahamas, Puerto Rico, St. Thomas and the Dominican Republic.
Norwegian Breakaway Year Built: 2013 Capacity: 4,000 guests Status: In service Location: Western Caribbean
Based in Miami, the Norwegian Breakaway is sailing a rotating schedule of seven-night Western and Eastern Caribbean cruises.
Norwegian Epic Year Built: 2010 Capacity: 4,200 guests Status: In service Location: Western Mediterranean
Capacity: 2,400 guests Status: In service Location: Eastern Mediterranean
Another Norwegian ship in Europe, the Norwegian Gem is currently positioned in the Eastern Mediterranean, offering cruises to ports such as Trieste, Dubrovnik, Corfu and Santorini.
Norwegian Jade Year Built: 2006 Capacity: 2,400 guests Status: In service Location: Eastern Mediterranean
The Norwegian Jade is currently based in Piraeus for a series of cruises to the Greek Islands and Turkey that includes visits to Istanbul, Mykonos, Rhodes, Santorini and more.
Norwegian Pearl Year Built: 2006 Capacity: 2,400 guests Status: In service Location: East Coast
Based in Boston, the Norwegian Pearl is offering week-long cruises to Bermuda and Maine.
Norwegian Jewel Year Built: 2005 Capacity: 2,400 guests Status: In service Location: Alaska
Pride of America Year Built: 2005 Capacity: 2,000 guests Status: In service Location: Hawaii
As the industry’s only large U.S.-flagged cruise ship, the Pride of America continues to offer its year-round schedule of Hawaii cruises. Sailing from Honolulu, the vessel’s regular itinerary includes visits to Kahului, Hilo, Kailua Kona and Nawiliwili.
Norwegian Dawn Year Built: 2002 Capacity: 2,200 guests Status: In service Location: Northern Europe
The Norwegian Dawn is presently in Northern Europe for a series of Baltic cruises. Leaving from Stockholm and Copenhagen, the itineraries feature visits to Finland, Estonia, Denmark, Sweden and more.
Norwegian Star Year Built: 2001 Capacity: 2,200 guests Status: In service Location: Northern Europe
Based in Reykjavik, the Norwegian Star is presently offering a series of cruises to Iceland and Greenland.
Norwegian Sun Year Built: 2001 Capacity: 2,002 guests Status: In service Location: Alaska
After hitting a growler in late June, the Norwegian Sun recently resumed its program of five- to nine-night cruises in Alaska.
Norwegian Spirit Year Built: 1999 Capacity: 2,000 guests Status: In service Location: Alaska
As the last ship to resume service for Norwegian Cruise Line, the Norwegian Spirit welcomed guests back in May. Before arriving in Alaska – where it’s currently sailing – the 1999-built vessel offered itineraries to the South Pacific and Hawaii.
Norwegian Sky Year Built: 1999 Capacity: 2,000 guests Status: In service Location: Miami, Florida
The Norwegian Sky is in Miami today for yet another short cruise to the Bahamas. The three-night sailing includes visits to Nassau and Great Stirrup Cay – Norwegian’s private island destination in the region.
With its three cruise brands now back in service, Norwegian Cruise Line Holdings plans to have 13 ships sailing commercially by Dec. 1.
While Norwegian leads the way, with nine vessels slated to sail, Oceania and Regent are also speeding up their restart plans.
Here is the latest brand by the brand update:
Norwegian Cruise Line Status: Six ships currently in service; three more sets to follow by Dec. 1 Ships: Norwegian Jade, Norwegian Encore, Norwegian Gem, Norwegian Epic, Norwegian Getaway and Norwegian Breakaway currently in service; Norwegian Bliss, Norwegian Escape and Norwegian Joy set to follow Regions: Mediterranean, Caribbean, Bermuda, Alaska and West Coast
After a 500-day operational pause, Norwegian Cruise Line resumed service in July with a series of Eastern Mediterranean cruises.
Currently, the brand has six vessels back in revenue operations, offering cruises in North America, the Caribbean and Europe.
With three more ships returning by Dec. 1, the company is set to return to additional destinations, including the West Coast – where the Norwegian Bliss is welcoming guests back on Oct. 24. Based in Los Angeles, the 4,200-guest ship offers a program of Mexican Riviera cruises through 2022.
While two other vessels are returning in 2021, the balance of the 17-ship fleet is slated to resume service next year.
Oceania Cruises Status:Two ships currently in service Ships: Marina and Riviera Regions: Mediterranean and Atlantic
Oceania Cruises resumed revenue service in August with the Marina. The vessel welcomed passengers back in Denmark for a series of cruises to Western Europe, the Mediterranean, and the Greek Isles.
A second ship, the Riviera, joined the active lineup recently, offering additional itinerary choices in the Mediterranean.
In December, the upper-premium brand is also resuming service with the Insignia – which is set to offer a Panama Canal cruise before kicking off it’s epic six-month-long “Around the World in 180 Days” voyage.
Phased restart dates for the balance of the Oceania Cruises fleet continue next, with three more vessels resuming guest operations in 2022.
Regent Seven Seas Status:Two ships currently in service Ships: Seven Seas Splendor and Seven Seas Explorer Regions: Northern Europe, Mediterranean, Caribbean and Panama Canal
With two ships now in service, Regent Seven Seas Cruises plans to have its entire fleet back in action by early 2022.
The luxury brand first restarted revenue operations in September, with the 2019-built Seven Seas Splendor. After resuming its inaugural season in Northern Europe, the vessel is currently sailing in the Mediterranean ahead of a winter season in the Caribbean.
The Seven Seas Explorer joined the active lineup recently, offering additional voyages in Europe.
A third Regent ship returning in December. The vessel is slated to sail a Panama Canal cruise before beginning an epic World Cruise in January.
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